What is the problem with high taxes?

Thus, high taxes cause foreclosures and evictions. With the foreclosure or eviction comes homelessness, because these victims of government greed can no longer afford to pay rent or mortgage payments. So high taxes cause homelessness. Because more people can’t afford to live on their incomes, the poverty rate goes up.

Do higher taxes on the rich hurt growth?

Tax Cuts and the Economy Further, reduced tax rates could boost saving and investment, which would increase the productive capacity of the economy. In other words, economic growth is largely unaffected by how much tax the wealthy pay. Growth is more likely to spur if lower income earners get a tax cut.

How does raising taxes affect the economy?

They found that marginal rate cuts led to both increases in real GDP and declines in unemployment. A 1 percentage-point decrease in the tax rate increases real GDP by 0.78 percent by the third year after the tax change.

Should we raise taxes on the wealthy to help the poor?

Increasing taxes for the wealthiest is socially divisive and encourages a class war situation where the poor and middle class begin to resent the rich, and the rich, who find themselves paying an increasing share of the tax bill, resent the poor and the middle class in return.

How do higher taxes affect the economy?

Higher taxes inevitably lead to a reduction in investment, as the people most likely to invest have their money supply hit. If there is less investment, then there are less businesses and unemployment increases.

What would happen if the government taxes the rich?

If the government taxes the rich then the rich would just decrease the amount of money that they give their hard working middle class employees. So in the end the rich still make the same amount of money and the middle class suffers. Raising taxes would just make the rich tax collectors of the poor and middle class.

Would a wealth tax on wealth destroy capitalism?

Most fundamentally, some people say, taxes on wealth would destroy capitalism, or at least slow the growth rate. A wealth tax would reduce incentives for entrepreneurs and thus kill innovation and technological progress, they argue. It would punish success. Higher taxes would be unfair, they say.